HomeMy WebLinkAbout2009-10-27 - RESOLUTIONS - CREATION OF RECOVERY ZONE (2)RESOLUTION NO. 09-86
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, AUTHORIZING THE CREATION OF A
RECOVERY ZONE UNDER THE PROVISIONS OF THE AMERICAN RECOVERY AND
REINVESTMENT ACT OF 2009 FOR THE PURPOSE OF ISSUING RECOVERY ZONE
BONDS UNDER SECTION 1400U-1, 1400U-2, AND 140OU-3 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED
WHEREAS, Section 1401 of Title I of Division B of the American Recovery and
Reinvestment Act of 2009, Pub. L. No. 111-5, 123 Stat. 115 (2009) ("ARRA"), added Sections
140OU-1 through 140OU-3 of the Internal Revenue Code of 1986 (the "Code"), authorizing state
and local governments to issue Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds; and
WHEREAS, the City of Santa Clarita was directly allocated a total of $22,117,000 to be
dispersed in the following manner: $8,847,000 in Recovery Zone Economic Development Bonds
and $13,270,000 in Recovery Zone Facility Bonds; and
WHEREAS, Recovery Zone Economic Development Bonds and Recovery Zone Facility
Bonds may be issued before January 1, 2011, as provided in Section 1400U-1 of the Code to
finance certain economic development projects located within designated "recovery zones;" and
-_ WHEREAS, Section-1400U=1_(b) of -the --Code requires, in part, that issuers -designate -and
eligible "recovery zone;" and
WHEREAS, for the purposes of Sections 140OU-1 and 140OU-3 of the Code, the term
"recovery zone" means: (1) any area designated by the issuer as having significant poverty,
unemployment, rate of home foreclosures, or general distress; (2) any are designated by the issuer
as economically distressed by reason of the closure or realignment of a military installation
pursuant to the Defense Base Closure and Realignment Act of 1990; and (3) any area for which a
designation as an empowerment zone or renewal community is in effect as -,of the effective date
of ARRA, which the effective date is February 17, 2009; and
WHEREAS, I.R.S. Notice 2009-50 ("Notice 2009-50") provides that for the purposes of
any state, county or large municipality that receives an allocation of Reco,�ery Zone Economic
Development Bonds and Recovery Zone Facility Bonds may make these designations of
"recovery zones" in any reasonable manner as it shall determine in good faith at its discretion;
and
WHEREAS, the City's unemployment rate increased from 3.5 percent to 7.7 percent
between March 2008 and July 2009; and
WHEREAS, the Santa Clarita City Council previously approved an area of the City that
was designated as a California Enterprise Zone, whereby the goals of reducing poverty and
increasing employment are similar; and
WHEREAS, the Santa Clarita Enterprise Zone encompasses 97 percent of all commercial
and industrial zoned areas of the City.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as
follows:
SECTION 1. The City's "Recovery Zone," for the purposes of Sections 1400U-1,
1400U-2, and 140OU-3 of the Code, is hereby designated to be the area denoted on the map
attached to this resolution, consisting of the geographical boundaries of the Santa Clarita
Enterprise Zone.
SECTION 2. The City finds that the "Recovery Zone" described above meets the
requirements of Section 140OU-1 of the Code.
SECTION 3. The City Manager, or his designee, is hereby authorized to execute and
deliver any and all documents which may be deemed necessary or advisable in order to designate
the Santa Clarita Recovery Zone,
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 27th day of October, 2009,
J"
MAYOR
ATTEST:
CITY CLERKT ,
FA
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the 27th day of October, 2009, by the following vote:
AYES: COUNCILMEMBERS: Kellar, McLean, Ender, Weste
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Ferry
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CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Resolution No. 09-86, adopted by the City Council of the City of
Santa Clarita, California on October 27, 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this _ day of
, 20_.
Sharon L. Dawson, MMC
City Clerk
By
Susan Caputo, CMC
Deputy City Clerk
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